When leasing property, what happens if a lease is assigned?

When a lease is assigned, the original tenant (the assignor) typically remains jointly and severally liable along with the new tenant (the assignee) for the obligations under the lease. This means that both parties can be held responsible for fulfilling the terms of the lease, such as paying rent and maintaining the property.

In most leasing agreements, unless the landlord explicitly releases the original tenant from liability upon assignment, that original tenant continues to bear responsibility even after the lease rights have been transferred. This is an important concept in lease assignments because it protects the landlord’s interests by ensuring that someone with a prior commitment remains liable for any obligations that arise under the lease, including potential defaults by the assignee.

The other options are less accurate because they imply a complete severance of liability or an automatic change in the terms of the lease, which does not generally occur through assignment alone. For example, the original tenant does not lose all liability upon assignment, nor does the landlord automatically release the original tenant. Additionally, the lease does not automatically renew for the new tenant merely because it has been assigned; any renewal terms would need to be explicitly stated in the lease agreement.